Both option upgrades are $80. I'm not sure if either are worth it, but I'm starting to use a couple newer techniques for retouching portraits that my current software doesn't support, particularly PSE8. Are either of these upgrades worth the $80? A few sliders here and there? A channels panel to separate RGB for sharpening?

Do you want to manage your images as well as process them ? If yes then get Lr 4. I like the better processing engine and better collection management than Lr 3. However, also a bit slower.

If you're not into managing your images then you're free to pick any editor. I'm not familiar with PSE - does it do parametric editing like Lr does or does it always change the original file with the edits ? Does it matter to you ?

Alan321 wrote:
Do you want to manage your images as well as process them ? If yes then get Lr 4. I like the better processing engine and better collection management than Lr 3. However, also a bit slower.

If you're not into managing your images then you're free to pick any editor. I'm not familiar with PSE - does it do parametric editing like Lr does or does it always change the original file with the edits ? Does it matter to you ?

Photoshop Elements changes the file each time it edits. I use both programs for different things. LR3 for basic exposure adjustments and PS8 for anything requiring work with layers.

LR 4.1 is like getting a new camera for free. The processing pipeline is that much better.
The learning curve from 3x to 4x is significant - it's a completely different animal in the develop module - but it is worth the effort. There is no question in my mind that this is a better use of the money than PSE. I also have and use CS6 and can tell you that except for pixel level editing all of my PP is now accomplished in LR4.

Looking into a trial version of CS6. I don't care much for DPP unless I want to go back and verify a focal point or something. To me, LR is useless if I'm going to use DPP anyway. I guess one could use DPP to process levels and tones in the RAW file then open in photoshop, but IMO LR is much better. Disclaimer, though, I don't know DPP well enough to say LR is better...it's just what I prefer.

I bought PSE and never could get the images to look right. Something always seemed off. I bought LR4 and was quite shocked how nice the post processing looked and how little time it took. For removing things like telephone poles, etc, I do like PSE eraser tool quite a bit, but otherwise never use it.

Incorrect - PSE does handle 16-bit/channel raw files and a lot of the editting can be done in 16-bit mode. Some features, such as layers and spot healing, e.g., requires the file to be converted to 8-bit first. So, you do all that you can in 16-bit (levels, highlights/shadows, sharpening, etc.), then convert to 8-bit IF you need those 8-bit features.